What type of policy issues certificates of insurance to the insureds?

A group policy is designed to provide insurance coverage to a group of individuals, typically under a single contract. This often occurs in employer-employee settings, where the employer secures a policy that covers all eligible employees. In this context, certificates of insurance are issued to the individual members of the group, serving as proof of their coverage under the larger group policy.

The use of certificates provides individuals with documentation of their insurance benefits without needing separate policies for each member, which enhances efficiency and reduces administrative costs. Each certificate will outline the coverage, benefits, and terms applicable to the individual.

On the other hand, individual, whole life, and term policies are issued directly to individuals, and as such, they do not necessitate certificates of insurance because each policyholder receives a full policy document. This differentiates group policies from individual policies, where no certificates are typically issued, making the group policy the clear choice in this scenario.